Petrobras Preps Bond Revival

Petrobras is on the road in the US and Europe to patch up relations with the buyside following a controversial pullback from the market last month. CFO Almir Barbassa was in New York yesterday and Boston on Monday to meet investors and talk about financing plans, which include placing $1bn-$2bn in the US market this year, according to one sellsider who met with the executive. In February, Petrobras yanked a $500m retap of 6.125% 2016 notes. One investor says the plan is to try a new deal at that tenor again. Like most high-grade LatAm issuers, Petrobras could bring a bond any time if it is willing to pay the going rate. Petrobras was not willing to meet the market’s demands in last month’s aborted sale via Morgan Stanley and BNP Paribas. Citi, HSBC and UBS were tapped to accompany the issuer on its most recent roadshow. “The new issue premium for high grade today is 25bp-30bp over existing levels,” says a trader, who speculates an upcoming offering could reach $750m in size. Separately, Petrobras shareholders have approved a 2-for-1 share split. It will give shareholders one additional share or ADR for each they already hold as of April 25. The stock closed at BRL73.70 Tuesday.